According to the Ministry of Finance the consumer price index (CPI) based inflation will continue to trend downward in December due to declining international commodity prices likely to balance inflation spikes because of local supply disruptions.
According to the Finance Ministry’s Monthly Economic Update & Outlook for December 2022 CPI inflation will remain in the range of 21-23% in December while the report also stated, “Inflationary pressure has started easing out as the month-on-month CPI inflation declined from massive high of 4.7% in October 2022 to 0.8% in November,” it said in the report.
The report said that the government’s recent move to bring relief to the masses by lowering the price of petroleum products was anticipated to result in reduced costs for food and non-food items for the general population.
“Inflationary pressure has started to ease off as monthly CPI inflation decreased from a huge high of 4.7 percent in October 2022 to 0.8 percent in November,” and “CPI inflation will continue in the range of 21 percent-23 percent in December,” the report has said.
It is important to note that CPI-based inflation decreased from 26.6 percent in October 2022 to 23.8 percent in November 2022.
The report has claimed that the industrial sector was the most susceptible to environmental factors. According to a baseline scenario, the Large Scale Manufacturing (LSM) production in October 2022 was a little lower than anticipated.
The average Monthly Economic Indicator (MEI) for the first five months of the current fiscal year has been indicated to be positive, according to the study.
The report noted that further monthly indications such as cement sales, vehicle manufacturing and sales and oil sales appeared to confirm the tendency. Since the beginning of the current fiscal year, the majority of high-frequency indicators have shown slower growth due to the economy’s significant external and internal obstacles.